FedEx today made a major expansion move in Latin America with a deal to buy long-standing localpartner Rapidão Cometa to gain a large domestic ground network in the region’s largest economy.
The transaction, which is subject to customary closing conditions, is expected to close in thethird quarter of 2012. The acquisition price for the privately-owned company was not disclosed. TheBrazilian deal follows FedEx’s acquisition of Mexican domestic parcels firm Multipack and serviceexpansion in Colombia last year.
“We are delighted that Rapidão Cometa will be joining FedEx Express. Brazil is a market withtremendous growth potential, both in the overall economy, as well as in the logistics sector. Theacquisition of Rapidão Cometa, one of the largest logistics solutions providers in Brazil, is inline with our long-term strategy to grow our Latin American business and better serve our customersseeking to enter or expand their businesses in the Brazilian market. FedEx will now be able toprovide a more comprehensive portfolio of services in Brazil, including international air express,domestic ground and value-added services such as supply chain and logistics solutions,” said JuanN. Cento, president, FedEx Express, Latin America and Caribbean.
FedEx said the acquisition is the latest step in its strategy for profitable growth in LatinAmerica and will further enhance the FedEx Express international and Brazil business offerings. Theacquisition of Rapidão Cometa, which has been one of FedEx’s authorised representatives in Brazilfor the past 11 years, will supplement the FedEx Express service portfolio in Brazil and continueits Latin America expansion through key strategic investments.
After the transaction is completed, FedEx Express will be able to seamlessly offer allinternational services to Rapidão Cometa customers while FedEx customers will have access todomestic package and freight services, logistics and distribution services.
The Brazilian firm, with some 9,000 employees at 45 branches and 145 distribution points, has afleet of some 770 vehicles and trailers. It operates a ground distribution network that providesday-definite transportation for small packages and heavyweight shipments, and also offers a rangeof logistics and distribution services. Founded 70 years ago, Rapidão Cometa has more than 17,000clients and delivers some 12 million shipments a year.
The integration of the logistics, distribution and express businesses of Rapidão Cometa will beachieved in phases over a period of 18 to 24 months after closing and will result in an extensiveand competitive FedEx network and portfolio throughout Brazil. The enlarged FedEx Brazil will havesome 9,500 employees in future.
FedEx stressed that Rapidão Cometa shares similar values and a culture committed to serviceexcellence. The companies have worked together for the past 11 years and are both committedto providing an excellent workplace environment.
